Purchase

Purchasing a home is one of life’s major decisions. To help customers through this decision, we at American Interbanc Mortgage are here not only to help with the loan application process, but also to help the customer understand what his/her borrowing options are based on personal finances and the customer’s borrowing needs. We also understand the need to close the purchase in a timely manner, and that you cannot close timely unless your mortgage lender processes and approves your loan in a timely manner. Our Loan Officers will work with you to make sure that contract dates are met. We are here to make this experience as quick, easy, and pleasant as possible while providing top notch service and complete process transparency.

Get Pre-Approved

The vital first step in the home buying process is getting pre-approved for a mortgage. A pre-approval answers two very important questions:

Can the customer be approved for a mortgage?

Can the customer be pre-approved for the loan amount that is necessary to buy a home in the customer’s desired neighborhood?

Benefits of a Pre-Approval:

Obtaining a pre-approval tells real estate agents and home sellers that the customer has been pre-approved for a specific mortgage amount. Real estate agents and sellers increasingly rely on pre-approvals to identify serious offers.

Let’s the customer shop confidently knowing how much he/she may be able to borrow.

Gives the customer a head start and saves the loan processing time after the customer has found a home.

American Interbanc Mortgage offers mortgage pre-approvals with no upfront fees and no obligation. A pre-approval is processed through our system just like a regular loan except the property address is listed as “to be determined.”

The pre-approval will be contingent on satisfying all underwriting requirements and conditions, and obtaining an acceptable property appraisal and title.

Once the customer’s pre-approval request is approved, we will issue a pre-approval letter that the customer can provide to the real estate agent. Most real estate agents require this letter before they will proceed with a purchase offer.

Get Started On a Pre-Approval:

Below is a checklist of the documentation required to begin the processing of the customer’s pre-approval. Documents sent to us can be copies unless otherwise stated.

Income Documents:

Pay Stubs covering the customer’s most recent two pay periods for each applicant.

W-2 Forms for the previous two years.

Most recent two years federal tax returns. All the pages and all schedules please. State tax returns are not required.

If the customer is self-employed, business tax returns from the most recent two years are also needed.

For self–employed or investment income, 1099’s andK-1 forms from the last two years are also needed.

For self–employed business income,year-to-date profit and loss statement and balance sheet.

Most recent two months statements for the customer’s savings, checking, investment and retirement accounts. The customer’s most recent quarterly statement covering a three month period is also acceptable. Please provide all pages of the statements.

Other Documents:

Homeowner’s Insurance statement(s) for all properties owned showing the customer’s coverage and the annual premium.

Mortgage statementsfor all properties owned that have liens.

Copy of driver’s license or State I.D.card for all customers.

If divorced, the customer’s fully executed divorce decree.

Note: Additional documentation may be required depending on the specific details of the customer’s loan application.

Purchase Process

Over the years we have helped numerous customers secure financing for their home. We understand that the purchase process can be overwhelming and confusing at times. As such we have designed our process to be simple and easy to navigate with your Loan Officer. For more information about the typical purchase process, please see below:

FAQs

Q: What are the benefits of home ownership for first-time buyers?

A: As a homeowner, the customer will be able to:

Take control: Avoid rent increases and cancelled leases while creating a home that meets the customer’s needs and tastes.

Build home equity: Grow the customer’s assets with the principal portion of the customer’s mortgage payments as the customer’s property value increases.

Build the customer’s credit: Create a strong credit history by making on-time mortgage payments.

Q: How will American Interbanc Mortgage evaluate my mortgage application?

A: We review a number of factors during the mortgage application process including the customer’s income, current debt and credit history, assets and available funds, and we review the property itself.

Q: Can a customer buy a home if I have less-than-perfect credit?

A: In some cases, one or two late payments may not disqualify the customer from obtaining a loan approval. Lenders do not only look at the customer’s credit history, but also at the ability and willingness to pay in the future.

Q: Which mortgage and homeowners costs are tax-deductible?

: Three types of mortgage and homeowners costs may be tax-deductible: discount points, interest paid on a home loan or home equity loan, and property taxes. The customer should consult a tax adviser to determine eligibility.

Q: Is a home appraisal required and who will order them?

A: As part of the loan process, lenders will require a home appraisal to be performed. The appraisal will be ordered by the lender and processed through an appraisal management company and then completed by a licensed appraiser. Customers are typically required to pay for the appraisal before the appraiser sets the appointment.

Required Documents

Below is a checklist of the documentation required to begin the processing of the customer’s pre-approval. Documents sent to us can be copies unless otherwise stated.

Income Documents:

Pay Stubs covering the customer’s most recent two pay periods for each applicant.

W-2 Forms for the previous two years.

Most recent two years federal tax returns. All the pages and all schedules please. State tax returns are not required.

If the customer is self-employed, business tax returns from the most recent two years are also needed.

For self–employed or investment income, 1099’s and K-1 forms from the last two years are also needed.

For self–employed business income,year-to-date profit and loss statement and balance sheet.

Most recent two months statements for the customer’s savings, checking, investment and retirement accounts. The customer’s most recent quarterly statement covering a three month period is also acceptable. Please provide all pages of the statements.

Other Documents:

Homeowner’s Insurance statement(s) for all properties owned showing the customer’s coverage and the annual premium.

Mortgage statements for all properties owned that have liens.

Copy of driver’s license or State I.D.card for all customers.

If divorced, the customer’s fully executed divorce decree.

Note:Additional documentation may be required depending on the specific details of the customer’s loan application.

Rate Lock Policy

At a certain point in the processing of your loan, you will be eligible to request your rate lock. The rate lock secures the market rate then in effect for the lock period that you choose. Rate locks are available in 15, 30, 45 or 60 calendar day periods. The most commonly chosen rate lock period for refinances is 30 calendar days. For purchases, you will have to take into consideration the time period between the lock date and the closing date.

Rate Lock Hours:

Lock requests will be accepted from the time we post rates on our website until 4:00 PM PST/PDT Monday through Friday, excluding holidays. No locks will be accepted on holidays. Please use email communications during non-working hours. You must be eligible to request a lock per our written policy stated here in our website.

Please call 800-724-0004 to speak with a Loan Officer or email ([email protected]) us if you have questions regarding your rate lock.

Rate Lock Requirements:

A representative from American Interbanc Mortgage must have provided confirmation that we are in receipt of a complete loan application sent from our secure website.

We must have received a rate lock agreement form signed by the borrower.

We must have received all of the initial required documents itemized in the Required Documents section of our website.

Unlike most companies, we do not require that you be approved in order to lock in an interest rate with the exception of a 15 day rate lock.

On a purchase transaction, we do require that you show proof that you have a home under contract before you are eligible for a rate lock.

15 day rate locks (offered on selected loan programs) require full loan approval and a clearance and satisfaction of all outstanding loan conditions.

For 15 day rate locks, borrowers need to be aware that they bear the risk that the market will deteriorate between the time they apply and the date they become eligible to lock.

Rate Lock “Float-Down” Policy:

American Interbanc Mortgage will consider requests by borrowers to “float-down” certain locked loans prior to the expiration of the lock or the funding of the loan, whichever is earlier, subject to the terms in this policy. The term “float-down” refers to a borrower’s desire to take advantage of improvements in the market and renegotiate better loan terms than those to which the borrower previously committed at the time they executed a rate lock agreement.

A float-down is available only on a one-time basis per loan and only for fully approved loans with all loan conditions satisfied. A float-down is for the same program and does not extend the existing rate commitment period. Float-downs are not available for adjustable rate mortgages, and American Interbanc Mortgage reserves the right to decline to agree to a float-down at its discretion.

Any borrower desiring to negotiate a float-down on an eligible mortgage loan shall be subject to the following; an additional fee of $500.00 or .5% point (based on loan amount), whichever is greater. A borrower with a 30-day lock may only float-down to current 30-day pricing, and a borrower with a 15-day lock may only float-down to current 15-day pricing. A float-down shall not extend the original expiration date of the initial lock period. All extension costs associated with a float-down shall be paid by the borrower. Float-downs are not available in New Jersey.

Rate Lock Extension/Relocks:

A borrower may request a rate lock extension for a period up to a maximum of 30 days. Rate lock extensions are issued in 7 calendar day increments and are added to the end of the current rate lock period. Each 7 day increment can be extended at additional minimum cost of .125% of the loan amount. A maximum of 2 extensions for a combined total of 30 days of extensions (in any combination of 7 day increments) are available for a loan.

A borrower may cancel a rate lock at any time; however, the borrower can only relock at the worst case pricing of the current market or the original rate lock plus an additional fee of .50% of the loan amount. Alternatively, the borrower may wait 30 days from the last expiration date of a lock and relock at the current market price then in effect.

Losing Your Rate Lock/Failure to Comply:

American Interbanc Mortgage reserves the right to cancel or modify the duration of a rate lock for the following reasons:

If at any time the borrower has not provided any documents we have requested within 48 hours of our request.

If at any time the borrower has delayed the process by failing to comply with appointments.

If the borrower fails to timely return initial signed disclosure documents, including the Intent to Proceed

Confirmation of Your Rate Lock:

Lock requests are executed immediately upon receipt. The borrower should consider the lock confirmed only upon receipt of a letter signed by an authorized representative of American Interbanc Mortgage.

Volatile Market Conditions

American Interbanc Mortgage reserves the right to suspend lock requests on any business day that market conditions prohibit our ability to execute a lock.

Talk to a Loan Specialist Today

We want you to feel confident about purchasing or refinancing your home. Our experienced loan specialists are here to answer any questions or to address any concerns you may have. Get in touch today to lock in your custom rate or to begin the application process.